By the time Lester “George Baby Face Nelson” Gillis
was learning to run rum in the
Chicago suburbs, and John Dillinger
was serving time for armed robbery,
the Winona booze racket was in full
swing.
The city is seldom mentioned in the historical
accounts of America’s most notorious
criminal era — there were no big bank
robberies, shootouts or kidnappings. But
many Winonans were certainly willing to
take part in an illicit business that
lined the gangsters’ pockets.
When Prohibition started in 1919, the city had 42
saloons. Just a few years later, a
thirsty Winonan could find a drink in as
many as 200 speakeasies, many operating
in the open. The Cozy Corner on West
Fifth Street and the Unlucky Seven on
Third Street— what is Gabby’s today —
served “home brew” made in Winona. Some
private living rooms turned into taverns
come nightfall.
An investment of just 5 cents could make $5 in
profit on the black market, and it
wasn’t long before the city’s bathtubs
were filled with gin and farmyard stills
overflowed with whiskey. Winona became
known throughout the Midwest as an “open
town,” where police largely turned a
blind eye and graft kept the liquor
flowing.
Its location on the booze pipeline from Chicago to
St. Paul meant Winona was a popular
waypoint for the underworld elite.
Newspaper reports tell of bullet-riddled
cars found in Winona County ditches,
empty except for the lingering scent of
their cargo.
“(Gangsters) moved through the area quite a bit,”
says Chad Lewis, author of “The
Minnesota Road Guide to Gangster Hot
Spots.” “And when they came to town, you
knew exactly who they were because of
their clothes and cars.”
That, and what they ate at the county jail.
On the rare occasions Winona police made arrests,
the gangsters
unfortunate enough to be caught
ordered their meals from Winona’s finer hotels and
restaurants. It wasn’t unusual to see
waiters carrying trays into the jail at
mealtime.
A chance to rub shoulders with the country’s most
notorious criminals kept the speakeasies
hopping, Lewis said. One club in
particular, the Oaks in Minnesota City,
was rumored to be a mob hangout, said
Walt Bennick, an archivist at the Winona
County Historical Society.
Other clubs and speakeasies catered to the everyday
Winonan. “Thousands of Winona residents
who ordinarily would not have even
thought of breaking a municipal
ordinance were found to have no qualms
about participating in the most
flagrant, widespread violation of the
highest law of the land,” according to
an abridged Winona Daily News story
published in 1955.
But by the late 1920s, a decade of excess had drawn
the attention of federal officials in
St. Paul and Washington, D.C.
The nation’s top Prohibition official, James Doran,
grew up in Winona, where his father was
a Methodist minister. He was named
federal commissioner of Prohibition in
1927, and after a visit to his boyhood
home the next year, he was rumored to be
appalled at the rampant lawlessness.
More federal liquor cases were filed
against Winonans in the 18 months after
his visit than had been in the entire
decade prior. Federal officials
conducted 25 raids and made 31 arrests
alone in June 1928. Many of the arrested
ended up in the federal prison at
Leavenworth, Kan.
The most significant crackdowns began in 1929, when
four federal agents came to Winona as
part of a two-month investigation into
dry-laws violations in the city. When
word got out that the feds were in town,
several hundred people gathered to wait
for them on Mankato Avenue, according to
reports in the Winona Republican-Herald,
the grandfather paper of the Winona
Daily News. The agents were chased away,
rocks flying behind them.
The feds pledged to return, and on Aug. 26, 1929, a
busload of 35 agents disguised as
picnickers rolled into Winona. Once
again, word of their arrival spread
quickly. Only this time, the crowd was
500 people. The mob attacked the bus
near Mankato Avenue and slashed its
tires. One woman was knocked
unconscious. It took police five hours
to clear the streets. The feds rounded
up 17 Winonans, and had to cling to the
side of the bus as it rambled toward the
jail.
“Knock, Knock, Knock, the Feds are Raiding,” read
the banner headlines in next editions of
the Republican-Herald. When police later
investigated the vandalism, they
couldn’t find a single witness to the
incident.
Following the Mankato raids, the feds in St. Paul
named a special division chief tasked
specifically with drying out Winona.
Karl “Baby Face” Neurenburg promised to
raid the city once a week. In November,
he padlocked 23 speakeasies on a single
day. Thousands of gallons of home brew
were destroyed.
But the raids did little to quell Winona’s appetite
for booze. On Oct. 22, 1930, two Winona
men were arrested trying to steal 310
gallon tins of seized whiskey stored at
the La Crosse, Wis., home of a federal
agent. The next year, a rum runner was
gunned down in St. Charles.
By 1932, the city — and even some public officials
— were fed up. The city was still being
raided regularly, even as an underworld
element continued to operate. Scores of
otherwise innocent Winonans were in
federal prisons. On May 14, Mayor James
B. Rice led a parade against Prohibition
through the city streets.
Popular opinion was beginning to shift in other
parts of the country, as well. Herbert
Hoover’s G-men had shifted the public’s
perception of the gangsters from
likeable celebrities to public enemies,
Lewis said. The feds were getting better
at tracking them, and the gangsters were
driven underground by big rewards and
intensifying violence.
Prohibition ended Dec. 5, 1933, and within a year,
John Dillinger and Baby Face Nelson were
dead. Winona’s illicit booze market
dried up, and the feds went back to St.
Paul.
“I think deep down, everyone wanted it to end,”
Lewis said. “The lifestyle got to be too
much.”